Full-Service Investment Bank Unrealistic for RBS: Davies

The transcript discusses RBS's strategy to downsize its investment bank and focus on UK and Ireland operations. It highlights RBS's ties with the EU and concerns over Brexit's impact. The conversation shifts to the global economic outlook, referencing secular stagnation and Japan's economic model. Finally, the potential for banking mergers in the UK and Europe is explored, noting the challenges and opportunities in the current financial landscape.

What is the primary focus of RBS's new strategy?

• To increase its presence in the Asian markets

• To focus on British and Irish markets with limited investment banking

• To become a full-service investment bank

• To expand its investment banking services globally

Why is RBS concerned about its bank in Ireland?

• It is facing regulatory issues

• It has no links to the European Union

• It is a significant asset in the eurozone

• It is not profitable

How does RBS view its role in the European financial market?

• As a leader in European investment banking

• As a competitor to American banks

• As a part of the single financial market in Europe

• As a minor player with no significant ties

What economic condition is described as 'secular stagnation'?

• A sudden economic boom

• High inflation rates

• A prolonged period of low growth

• Rapid economic growth

Which country is mentioned as a template for a weaker growth environment?

• China

• Japan

• Germany

• United States

What is the likelihood of banking mergers in the UK according to the transcript?

• Very likely

• Unlikely due to a concentrated banking system

• Certain to happen soon

• Already in progress

What challenge do small banks in Europe face?

• Weakness from a capital point of view

• Strong capital positions

• Excessive profitability

• Lack of competition